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Kohl's New Strategy

May 1, 2007

In an attempt to get more customers to shop more departments, Kohl's Department Stores has embarked on a new marketing effort titled, "Explore the Store." More than half of shoppers at Kohl's Department Stores buy merchandise in only one of the available categories, executives said.

The typical Kohl's customer spends $50 to $65 per transaction. The new initiative is designed to raise that amount by luring shoppers from women's apparel, for example, into men's departments and home product aisles.

To accomplish the goal, the retailer is intensifying the visual graphic elements in stores. While adding signs that direct customers to various departments, it is also upgrading its jewelry, accessories and cosmetics categories.

In addition, Kohl's is shifting advertising away from promoting specific products, and toward general branding of its exclusive product lines. Chief among those is a Very Vera by Vera Wang collection, which will be introduced this fall. It will span several departments, including sportswear, intimate apparel, handbags, leather accessories, jewelry, footwear, linens and towels.
"We will shift more of our money into branding to support the whole store," Kohl's president Kevin Mansell says. The executives did not disclose the amount the company will spend on the new advertising strategy.

The Vera Wang line is an important component of Kohl's efforts to get customers to cross shop among merchandise departments.

It also plans to increase consumers' awareness that the stores have added Ralph Lauren Chaps products in the menswear and home departments, other lines such as Tony Hawk in boys wear, and Estée Lauder makeup lines.

Kohl's is currently strongest in apparel lines. It hopes to balance sales better by adding more choices in cosmetics, personal care, and bed and bath.

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